Harvard Case - General Mills: Responding to the Killing of George Floyd (A)
"General Mills: Responding to the Killing of George Floyd (A)" Harvard business case study is written by Debora L. Spar, Alicia Dadlani. It deals with the challenges in the field of General Management. The case study is 6 page(s) long and it was first published on : Jul 8, 2022
At Fern Fort University, we recommend General Mills adopt a comprehensive, multi-pronged approach to address the systemic issues of racial injustice and inequality highlighted by the killing of George Floyd. This approach should be grounded in corporate social responsibility (CSR), diversity and inclusion (D&I), and strategic planning, and should be implemented through a change management process that fosters organizational learning and employee engagement.
2. Background
The case study focuses on General Mills' response to the murder of George Floyd and the ensuing national protests against racial injustice. The company faced pressure from employees, consumers, and investors to take a public stance and demonstrate tangible actions to address racial inequality. The case highlights the complex challenges faced by corporations in navigating sensitive social issues and balancing stakeholder expectations with business objectives.
The main protagonists are:
- Jeff Harmening, CEO of General Mills, who needs to navigate the company's response to the crisis while considering the impact on its brand, employees, and business operations.
- General Mills' leadership team, who must develop a strategy that addresses the concerns of various stakeholders and aligns with the company's values.
- General Mills' employees, who are demanding action and accountability from the company in response to the social unrest.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand reputation and customer loyalty.
- Established commitment to corporate social responsibility.
- Diverse workforce with a history of employee engagement.
- Strong financial position and resources to invest in initiatives.
Weaknesses:
- Limited track record of addressing racial inequality within the organization.
- Potential for backlash from customers and employees if actions are perceived as insufficient.
- Risk of internal divisions and conflict over the company's stance.
Opportunities:
- Opportunity to strengthen brand image and customer loyalty by demonstrating commitment to social justice.
- Opportunity to attract and retain top talent by promoting diversity and inclusion.
- Opportunity to drive innovation and growth through initiatives that address social issues.
Threats:
- Increased scrutiny from stakeholders and potential for reputational damage if actions are not perceived as genuine.
- Potential for boycotts or negative publicity if the company is perceived as not doing enough.
- Risk of legal challenges or regulatory scrutiny related to diversity and inclusion initiatives.
Porter's Five Forces:
- Threat of new entrants: Relatively low, as the cereal industry is mature with high barriers to entry.
- Bargaining power of buyers: Moderate, as consumers have many choices but are generally loyal to brands.
- Bargaining power of suppliers: Moderate, as General Mills has significant purchasing power but relies on a limited number of suppliers.
- Threat of substitute products: Moderate, as consumers can choose from various snack and breakfast options.
- Competitive rivalry: High, as the cereal industry is dominated by a few major players.
Key Issues:
- Balancing stakeholder expectations: General Mills needs to satisfy the demands of employees, consumers, investors, and other stakeholders while remaining true to its core values and business objectives.
- Developing a comprehensive strategy: The company needs a clear and actionable plan to address racial inequality, both internally and externally.
- Managing change and communication: Implementing significant changes requires effective communication and engagement with all stakeholders to ensure buy-in and minimize resistance.
4. Recommendations
1. Establish a Clear and Ambitious Diversity and Inclusion Strategy:
- Goal Setting: Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for increasing diversity and inclusion at all levels of the organization.
- Leadership Commitment: Demonstrate top-down leadership commitment to D&I by actively promoting and supporting initiatives.
- Data Collection and Analysis: Track key metrics related to D&I, such as representation, retention, and promotion rates, to identify areas for improvement.
- Training and Development: Provide training on unconscious bias, cultural sensitivity, and inclusive leadership to all employees.
- Mentorship and Sponsorship Programs: Implement programs to support the career development of underrepresented employees.
2. Invest in Community Engagement and Social Justice Initiatives:
- Philanthropy and Partnerships: Increase financial support for organizations working to address racial inequality and social justice.
- Community Partnerships: Collaborate with local communities to develop programs that promote economic opportunity and social mobility.
- Supplier Diversity: Actively seek out and partner with minority-owned businesses.
- Employee Volunteering: Encourage and support employee involvement in community service initiatives.
3. Foster a Culture of Open Dialogue and Accountability:
- Employee Engagement: Create safe spaces for employees to share their experiences and perspectives on racial inequality.
- Transparency and Communication: Regularly communicate progress on D&I initiatives to all stakeholders.
- Accountability Mechanisms: Establish clear accountability for achieving D&I goals and address any instances of bias or discrimination.
4. Implement a Change Management Process:
- Communication Strategy: Develop a clear and consistent communication plan to inform employees about the company's commitment to D&I and the changes being implemented.
- Training and Development: Provide training on the new D&I policies and procedures.
- Employee Engagement: Seek feedback from employees and address their concerns.
- Leadership Support: Ensure that leaders are actively involved in the change process and are role models for inclusive behavior.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: General Mills' commitment to social responsibility and its core values of inclusion and diversity align with the recommendations.
- External customers and internal clients: These recommendations address the concerns of both external customers and internal employees, contributing to a more inclusive and equitable workplace and society.
- Competitors: By taking a proactive stance on D&I, General Mills can differentiate itself from competitors and attract talent and customers who value social responsibility.
- Attractiveness: Investing in D&I initiatives is not only morally right but also financially beneficial. It can improve employee engagement, attract top talent, and enhance brand reputation, leading to increased revenue and profitability.
6. Conclusion
General Mills has a significant opportunity to leverage its resources and influence to address the systemic issues of racial injustice and inequality. By implementing a comprehensive strategy that encompasses D&I, community engagement, and internal change management, the company can demonstrate its commitment to social responsibility, enhance its brand image, and create a more inclusive and equitable society.
7. Discussion
Alternative approaches to address the situation include:
- Silence: Ignoring the issue altogether, which would likely damage the company's reputation and alienate employees and customers.
- Superficial gestures: Making symbolic statements without taking concrete actions, which would be perceived as insincere and could backfire.
- Focusing solely on internal changes: Addressing D&I issues within the company without engaging in external initiatives, which would be insufficient to address the systemic nature of the problem.
These alternatives carry significant risks, including:
- Reputational damage: Ignoring the issue or making superficial gestures could damage the company's brand and lead to boycotts or negative publicity.
- Employee dissatisfaction: Failure to address employee concerns could lead to low morale, decreased productivity, and increased turnover.
- Limited impact: Focusing solely on internal changes would not address the broader societal issues of racial inequality.
8. Next Steps
- Develop a detailed implementation plan: Outline specific timelines, milestones, and resource allocation for each recommendation.
- Establish a dedicated D&I team: Appoint a cross-functional team to oversee the implementation of the D&I strategy.
- Regularly monitor and evaluate progress: Track key metrics and adjust the strategy as needed to ensure effectiveness.
- Communicate progress to all stakeholders: Provide regular updates on the company's progress to employees, customers, investors, and the public.
By taking these steps, General Mills can demonstrate its commitment to social responsibility, enhance its brand image, and create a more inclusive and equitable society.
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Case Description
Jeff Harmening, CEO of General Mills, one of the world's largest manufacturers of breakfast cereals and packaged foods, was deeply disturbed and instantly aware that he and General Mills would need to respond. George Floyd, an African-American man who had been accused by a sales clerk of using a counterfeit $20 bill to buy cigarettes, had been arrested and then killed by Minneapolis police. The video of his heart-wrenching death had gone viral worldwide. In the past, the company had not typically commented on racial incidents. But this time felt different. As the leader of one of Minneapolis' largest companies, and one profoundly committed to its community, Harmening needed to determine how and to whom to respond.
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